Hyundai Glovis to Increase Fixed Fleet Capacity to 67%

[Financial News] Daishin Securities said on the 29th that Hyundai Glovis is expected to increase its share of fixed fleet capacity (owned vessels and long-term charters) to 67% by 2029. This would be up from 47% last year and is part of the company's medium- to long-term operating strategy for Pure Car and Truck Carriers (PCTCs). The brokerage initiated coverage with a Buy rating and a target price of 320,000 won. The previous session's closing price was 198,500 won.
Lee Jini, a researcher at Daishin Securities, explained, "The total PCTC order backlog is only about 24% of the existing fleet, so supply pressure from new deliveries is easing." She added, "PCTC charter rates are rising again toward $100,000 per day."
According to Daishin Securities, China's automobile exports increased from approximately 3.11 million vehicles in 2022 to 7.06 million in 2025. In the first half of this year alone, exports reached 5.10 million vehicles, up 65% from the same period a year earlier. The share of long-haul routes is also growing, particularly to Europe and Latin America, creating an additional ton-mile effect—the product of transportation distance and cargo volume.
Lee Jini forecast that Hyundai Glovis's non-affiliate cargo volume would significantly increase upside in shipping segment revenue. Growing demand for construction machinery and heavy equipment (High & Heavy), driven by a recovery in global infrastructure investment, was also cited as a key factor supporting earnings growth.
H&H cargo commands freight rates approximately 30% higher than passenger cars, contributing to overall revenue and margin improvement, according to Lee's analysis. Hyundai Glovis's secured H&H volume rose sharply from approximately 2 million CBM in 2024 to about 3 million CBM based on current one-year contracts.   


[email protected] Kang Gu-gwi Reporter